Ethics

Session 6:

McNeil Consumer Healthcare is a subsidiary of Johnson and Johnson, which had undertaken a series of recalls for over the counter(OTC) medications. A total of seven recalls are made in which five are related to chemical odor on packaging and other two on children's medications. The factors that led to the product recall are, the replacement of senior employees of quality control department in the early 2000s by McNeil with less experienced employees. These new employee are worked under contract instead of working as direct McNeil employees. This decision taken by McNeil led them towards decline in quality control and also problems in testing department. The standards of tests that were difficult to meet were removed from process. These new employees tried to take lots of shortcuts. By 2007, these problems become so prevalent that an internal memo at McNeil, which shows high percentage of operator errors in every work center as well as relaxed standards in selecting medicines to test, among other concerns. From 2005 to 2009 alone, the number of employees working for McNeil at Fort Washington plant decreases 32%, including all employees of corporate compliances group.

Another major factor include purchase of Pfizwe's consumer healthcare division for $16.6 billion and merged the group with McNeil by assuming a huge profit of $500 to $600. As a result McNeil was moved from Johnson & Johnson pharmaceutical group to consumer group which was headed by Goggins. This move made some of the former employees unhappy and they though the culture was un fit. McNeil executives were asked to dramatically cut costs to help meet the manager goals. These are the major factors that lead to improper working in McNeil and as a result, the improper products were recalled.